Friday, May 12, 2006
Category:
Finance News
Mortgage lending to Britons soared last month, according to new figures from the Council of Mortgage Lenders (CML).
Gross mortgage lending hit £28.3 billion in March, a 26 per cent growth on the previous month and the highest figure for the month on record.
This suggests that the housing market is picking up following the traditional slowdown in house buying during the winter period.
However, it was pointed out by the CML that lending during autumn and winter was strong, due to high consumer confidence and steady house prices.
"House-buying activity was particularly strong around London reflecting high city bonuses, and this is probably a factor behind the strength of lending," remarked CML director general Michael Coogan.
"Mortgage approvals remain high, but the upward trend in seasonally adjusted approvals for house purchase witnessed over the past year seems to be drawing to an end," Mr Coogan added.
Although the CML believes activity may be "peaking", demand for remortgages is predicted to remain high during the coming months.
